# 119-hr-2981: USA CAR Act

119-hr-2981, USA CAR Act, is a 119th Congress bill sponsored by Rep. Taylor, David J. [R-OH-2] (R-OH); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2981
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2981
- Congress: 119
- Title: USA CAR Act
- Status: introduced
- Introduced: 2025-04-21
- Sponsor: Rep. Taylor, David J. [R-OH-2] (R-OH)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**A new federal tax deduction for interest on financing U.S.-assembled cars** would let buyers deduct interest on loans used to buy vehicles whose final assembly occurs in the United States. The deduction would apply only to debt incurred on or after January 1, 2025. - Families and car buyers: Buyers could deduct interest paid or accrued during the tax year on debt used to acquire a “qualified automobile” when the loan is incurred on or after January 1, 2025. This reduces the after-tax cost of financing those vehicles. - Automakers and manufacturing: The break is tied to vehicles whose final assembly occurs in the United States under the Automobile Information Disclosure Act. That creates a tax incentive favoring cars assembled in the U.S. - Tax system and lenders: The bill adds a new defined term and deduction into the existing federal interest deduction rules in Section 163(h). The change operates through current tax filing and deduction processes.

## Provisions PRIA read

- Deduct interest on U.S.-built car loans: benefit, high. If enacted, you could deduct the interest you pay on a car loan. The car’s final assembly would need to be in the United States and made by a manufacturer. The loan must be taken on or after January 1, 2025, used to buy that car, and secured by the car. Only interest paid or accrued during the year…

## Related bills

- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-3898: PERMIT Act
- 119-hr-1163: Prove It Act
- 119-hr-9535: Securing Agriculture's Workforce Act of 2026
- 119-hr-9298: Stopping Harmful and Outrageous Torts Act

## Sources
- [119-hr-2981 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2981)

## Related
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-3898: PERMIT Act](https://policyrisk.com/legislation/119-hr-3898)
- [119-hr-1163: Prove It Act](https://policyrisk.com/legislation/119-hr-1163)
- [119-hr-9535: Securing Agriculture's Workforce Act of 2026](https://policyrisk.com/legislation/119-hr-9535)
- [119-hr-9298: Stopping Harmful and Outrageous Torts Act](https://policyrisk.com/legislation/119-hr-9298)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2981 (as of 2026-04-21).